Custodia Bank is challenging a lower court’s ruling in its battle for a Federal Reserve master account.
Custodia Bank has filed a notice of appeal with the United States Tenth Circuit Court of Appeals, challenging a lower court’s decision from March denying its attempt to officially join the U.S. banking system.
According to an April 26 court filing, the bank is seeking a federal-level appeals court's review of a decision by Judge Scott Skavdahl of the District Court for the District of Wyoming. The decision dismissed Custodia’s request for a Federal Reserve master account in the United States.
Federal Reserve master accounts are accounts held by a financial institution directly with the Federal Reserve Bank. Having a master account gives banks access to Federal Reserve services such as Fedwire and the Automated Clearing House (ACH) network for electronic payments. In 2022, Fedwire processed approximately 196 million transfers, worth more than $1 quadrillion.
